The Financial Services Compensation Scheme has stepped in to protect nearly 4,000 members of Huddersfield-based Castle and Minster Limited Credit Union, after it was placed into administration and ceased trading yesterday (3 March).
The FSCS has pledged that the overwhelming majority of savers - who in total have just over £2.4m invested in the firm - will get their money back within seven days.
It said in a statement “people will not need to lift a finger to get their savings back”. Using credit union records, the FSCS will automatically send payments to members of the credit union.
Those with up to £1,000 will receive a letter to get cash over the counter at their Post Office; anyone with more than this will receive a cheque.
Kate Bartlett, director of operations for FSCS, said: “FSCS is protecting Castle and Minster Credit Union members. We’re ready to help.
“Your savings are safe and we will get your money back to you within the next week. The process is automatic so you won’t have to apply for compensation. We will pay up to £85,000, so every member of the credit union is protected.”
In November last year the FSCS stepped in to protect nearly 440 members of Lower Iveagh Credit Union Limited after it was wound up.
The credit union was based near Belfast and on 18 November ceased trading and was placed into liquidation and has now appointed Joan Rice of Harbinson Mulholland as liquidator.
ruth.gillbe@ft.com
